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BT presented with ADSL price challenge
Upstart broadband company Tele2 is taking advantage of the slow roll-out of BT's ADSL offering by undercutting its prices.

By Ron Coates

Published: Tuesday 31 October 2000

The company, which has 600 commercial customers in the Thames Valley and the Midlands, is to offer cheaper instant access to consumers. Its 999 service offers home users continuous 150Kbps internet access for £9.99 a month.

The catch is that users will have to have a line-of-sight to Tele2's masts. Sally Dent, marketing director at Tele2, said: "Trees don't bother it, but if you're surrounded by large buildings, it could be a problem."

Dent promised access would be faster in the evenings and on weekends as business use drops off. She said: "We start consumer trials in Leeds and Bradford in the next two weeks. We are also poised to roll out our business services to other areas in the new year."

The service is to start trials in November in Leeds and Bradford. The installation cost is £49.99 for the receiving aerial. The price compares with £39.99 and £150 installation charge for BT's 500 Kbps ADSL offering - when you can get it.

After the Leeds and Bradford trials, Tele2 aims to target other cities before BT extends ADSL to them. Manchester, Cambridge, Edinburgh and Bristol are among areas the company is ready to enter.

The company broadcasts in the 3.6 to 4.2GHz range. It is backed by Millicom International, a fast-growing international wireless service provider which normally offers wireless services in regions with limited fixed lines. Last year, Millicom's turnover was £341 million.